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> The "penalties" are just what you owed plus interest Sure, interest after 6 years can accumulate into a nice penalty sum on top of what is owed. If IRS ends
by rdtsc 7y ago
> The "penalties" are just what you owed plus interest
Sure, interest after 6 years can accumulate into a nice penalty sum on top of what is owed. If IRS ends up owing you, and they discover it 6 years later, would they send you the refund with an interest as well? I am guessing they won't.
- astura 7y agoI once filed taxes late (filed like 2012 taxes in early 2014) and my refund included interest, I think it was sent in a second check. They also sent me some form the year after that so I could declare the couple dollars interest I got from the IRS as income.
- nightski 7y agoYes the government always pays interest on money it owes you.
- briandear 7y agoNot true. They don’t give you interest on your payroll withholdings. If you overpaid taxes by $5000, you get exactly $5000 back as refund, despite them having that money for a part of the year.
- creato 7y agoThey do pay interest that accumulates some time after the filing deadline. This is probably just a practical matter, because accounting for interest during the tax year would be complex/impossible because you would need to know when the various amounts of withholding exceeded the amount owed. I'm not even sure there is a single consistent way of doing this.
- deleted 7y ago[deleted]
- quickthrower2 7y agoIs that interest taxed?
- colejohnson66 7y agoFrom https://news.ycombinator.com/item?id=21924216 https://news.ycombinator.com/item?id=21924216 Yes.